Will NVIDIA (NVDA) Beat Earnings? - Analyst Blog

NVIDIA Corp. ( NVDA ) is slated to report its second-quarter 2014 results on Aug 8, 2013. Let's see how things are shaping up for this announcement.

Growth Factors This Past Quarter

NVIDIA delivered decent first-quarter 2014 results, with earnings per share of 14 cents exceeding the Zacks Consensus Estimate of 11 cents.

The company witnessed a substantial increase in revenues generated by its gaming GPUs. Good cost management and a sales mix of higher-margin products helped the company to improve its gross margin. On the other hand, the company witnessed an increase in operating expense.

Although NVIDIA's business has been affected by the European weakness, it has provided a decent outlook for the second quarter.

Earnings Whispers?

The Zacks Consensus Estimate for the second quarter stands at 13 cents per share while that for fiscal 2014 stands at 72 cents.

NVIDIA has not missed estimates in the last four quarters, which resulted in an average positive surprise of 23.8% in the preceding four quarters.

Looking ahead to the upcoming quarter as well as the fiscal year, we see no estimate revisions in the last 30 or 60 days. As a result, the Zacks Consensus Estimate for both the periods have remained unchanged during this time. The stock carries a Zacks Rank #3 (Hold).

We caution against stocks with a Zacks Rank #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

According to our model, a stock needs to have a positive earnings expected surprise prediction or ESP (Read: Zacks Earnings ESP: A Better Method ) and a Zacks Rank of #1, #2 or #3 to beat estimates. Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this season:

Earthlink Inc. ( ELNK ), which has Earnings ESP of +28.57% and carries a Zacks Rank #3 (Buy).

InvenSense Inc. ( INVN ) withEarnings ESP of +5.26% and a Zacks Rank #2 (Buy).

Gartner Inc. ( IT ), with Earnings ESP of +2.38% and a Zacks Rank #2 (Buy).

EARTHLINK INC (ELNK): Free Stock Analysis Report

INVENSENSE INC (INVN): Free Stock Analysis Report

GARTNER INC -A (IT): Free Stock Analysis Report

NVIDIA CORP (NVDA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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